Risks and Corporate Management Problems Related to Them

Authors

  • Davit Gvenetadze

Keywords:

Production conditions, Risk Management, Strategic, Compliance, Operational, Financial, Reputational, Value at Risk, Risk Management Officer, Risk Management System, International and National Standards of Risk Management, Financial Stability Board, Federa

Abstract

The role of entrepreneurship in the international community is steadily rising, which is caused by economic conversions, with the constant growth and changing of consumer interests. This, along with many useful results, leads to an intensive competition between companies, irreversible renewal of business standards and additional normative regulations. Taken as a whole, legal corporative relations are becoming more complex, creating permanent risks for companies, business sectors, internal and external markets (including the states).
Absolute exclusion of the risks is impossible in business enterprise. Consequently, within the corporate management, risk detection/evaluation and management, is the most important prerequisite for business stability and growth. In addition, consistent and systematic implementation of this process is necessary, in order to minimize the negative impact of different types and scales on companies.
Considering the importance of the issue, the present article will discuss corporate risks and their types, analyze the specific cases of risk management and following consequences, as well as trends in different states and international markets.
The purpose of the article is to provide readers with information about the modern problems of risk management, to determine ways to solve them. A comparative-legal analysis method is used to achieve this goal.

References

A Guide to Corporate Governance Practices in the European Union – IFC (International Finance Corporation, World Bank Group), 2121 Pennsylvania Avenue, NW, Washington, DC 20433, 2015, 64.

A Risk Management Standard – Federation of European Risk Management Associations,

AIRMIC, ALARM, IRM: 2002, translation copyright FERMA: 2003, 3, 5, 7, 11, 13, 15.

Chanturia L., Corporate Management and Responsibilities in Corporate Law, Tbilisi, 2006, 68 (In Georgian).

Corporate Governance Guide, Georgia, September 2010. - IFC / International Finance Corporation – Consulting Program in Europe and Central Asia, 203, 204 (In Georgian).

Fernando A.C., - Corporate Governance: Principles, Policies and Practices. Pearson Education, 2009, 52.

Financial Institution Risk Management Issues - White paper, January 2014. sponsored by AIG. ADVISEN LTD (Insurance Intelligence), 2, 6, 7.

From Companies to Markets, Global Developments in Corporate Governance - International Finance Corporation. Copyright 2016, 2121 Pennsylvania Avenue, NW, Washington, DC 20433, 30- 32, 34.

Jonathan R.M., - Corporate Governance. Promises kept, Promises broken. Princeton University Press, Princeton and oxford, 2008, Published by Princeton University press, 41 William Street, Princeton, New Jersey 08540, 47.

International Standards of Risk Management: according to Basel unit - Alexander Baranov, Deputy of General Director of the Assets Management Chamber, Chairman of the ‘’ ПАРТАД’’ Committee for Internal Control and Risk Management, 2015, 25, 26, 30, (In Russian), http://partad.ru/UploadFiles/GetUploadedPdfFile?uploadFileId=113, [18.04.2017].

Kenneth R.A., - Rigid rules will not Make Good Boards’’ Harvard Business Review, November-December 1982, 35, 44.

Key Risk Management Challenges for 2013/2014.

https://www.sungard.com/resources/capital-markets/white-papers/adaptiv-key-risk-management-challenges-for-2013-2014-sungard, [24.04.2017].

Makharoblishvili G., Implementing fundamental changes in the structure of capitalist societies on the basis of corporate-legal actions (acquisition, merger), Comparative Legal Analysis, Ivane Javakhishvili Tbilisi State University, Faculty of Law, Tbilisi, 2014, 12 (In Georgian).

Maisuradze D., Corporate Legal-defensive Measures During the Reorganization of Capitalist Societies (Comparative-legal research preferably on the example of Delaware state and Georgian corporate law), Ivane Javakhishvili Tbilisi State University, Faculty of Law, I., Tbilisi, 2014, 7 (In Georgian).

Reputation risk, a Set of Economic and Financial Terms,

http://investocks.ru/reputacionnyx-risk-reputational-risk/, [12.04.2017] (In Russian).

Risk Management and Corporate Governance, Corporate Governance. OECD (The Organization for Economic Co-operation and Development) (2014), OECD Publishing. http://dx.doi.org/10.1787/9789264208636- en, 8, 12, [11/04/2017].

Risk management in small and medium-sized banks: problems and prospects - Evgenevna G., Associate Professor of Chair of Economic Analysis, Statistics and Finance, Kuban State University, Banking Management, Financial Prospect №2 (6) 2012, 8-10 (In Russian).

Specific corporate risks of capitalization, http://proizvodim.com/specifichnye-korporativnye-riski-kapitalizacii.html, [12.04.2017] (In Russian).

The UK Corporate Governance Code, FRC/Financial Reporting Council. April 2016, 9, 16-18.

The Corporate Governance Review-Reproduced with permission from Law Business Research Ltd. This article was first published in The Corporate Governance Review, 4th ed., (published in march 2014 Calkoen

J.L.W. ed.), Published in the United Kingdom by Law Business Research Ltd. London, 87 Lancaster Road, London W11 1QQ, UK. 2014, 85.

The problem of Enterprise Risk Management, 2017, (In Russian),

http://arbir.ru/articles/a_3902.htm, [11/04/2017].

The essence of Risk, the causes of risk creation, National Parliamentary Library of Georgia, http://www.nplg.gov.ge/gsdl/cgi-bin/library.exe?e=d-01000-00---off -0ekonomik - 00-1 ---- 0-10-0 --- 0 --- 0prompt-10 --- 4------- 0-1l - 11-ka-50 --- 20-about --- 00-3-1-00-0-0-11-1-0utfZz-8-00 & a = d & cl = CL2.13 & d = HASH6bac00dbf13ee602739cac.3.fc, [11.04.2017] (In Georgian).

https://www.bloomberg.com/news/articles/2014-04-09/olympus-sued-for-273-million-after-13-year-fraud, [11/04/2017].

https://www.theguardian.com/business/2008/dec/16/regulation-siemens-scandal-bribery; https://www.theguardian.com/business/2008/may/27/technology.europe, [12/04/2017].

http://dx.doi.org/10.1787/9789264208636-en, [11/04/2017].

https://en.wikipedia.org/wiki/Xerox, [11.04.2017].

https://business.tutsplus.com/tutorials/the-main-types-of-business-risk--cms-22693, [11.04.2017].

http://smallbusiness.chron.com/types-business-risk-99.html, [11.04.2017].

http://simplicable.com/new/compliance-risk, [11.04.2017].

http://www.investopedia.com/terms/o/operational_risk.asp, [11.04.2017].

http://www.risk.net/risk-management/2441306/top-10-operational-risks-2016#top, [11.04.2017].

https://www.simplilearn.com/financial-risk-and-types-rar131-article, [11.04.2017].

http://www.ethicalcorp.com/business-strategy/corruption-reputation-risk-and-opportunity, [12.04.2017].

http://www.ferma.eu/about/mission-and-objectives/what-is-ferma/, [18.04.2017].

http://www.investopedia.com/terms/b/basell-iii.asp, [18/04/2017].

http://www.chief-risk-officer.com/, [18/04/2017].

http://www.agcs.allianz.com/insights/expert-risk-articles/looking-forward-future-risks/the-risk-management-system/, [24.04.2017].

http://www.fsb.org/what-we-do/, http://www.fsb.org/about/fsb-members/, [18/04/2017].

http://www.aicpa.org/About/MissionandHistory/Pages/default.aspx, [18/04/2017].

Published

2017-12-31

How to Cite

Gvenetadze, D. (2017). Risks and Corporate Management Problems Related to Them. Journal of Law, (2). Retrieved from https://jlaw.tsu.ge/index.php/JLaw/article/view/2386

Issue

Section

Articles